The Consumer Price Index (CPI) in October stood at 8.11 percent against 8.27 percent during October 2005, while inflation during four months (July-October 2006-07) has gone down to 8.35 percent from last year's 8.55 percent.
The Federal Bureau of Statistics (FBS) reported on Saturday that the Wholesale Price Index (WPI) during October 2006 dipped by 0.49 percent over September 2006. It declined to 6.70 percent from 11.15 percent in October last year, which signifies future decline in prices in the coming months.
Though CPI and WPI inflation are on decline, the rising prices of food, fuel and house rent are still snatching the purchasing power of the low-income group, which is a challenge for the economic managers.
A significant feature of the monthly CPI bulletin was that year-on-year, the prices of food, fuel and lighting inched up to double digits as compared to the corresponding month of last year. According to the data, in October 2006, fuel and lighting charges rose by 11.34 percent and prices of food and beverages increased by 10.54 percent over October 2005.
It further says that medicare charges increased by 9.85 percent, education was expensive by 7.07 percent, house rent increased by 6.88 percent and household, furniture and equipment by 6.53 percent as compared to corresponding month of last fiscal. According to WPI, raw materials prices (including pig iron 14.29 percent) increased by 8.24 percent, food by 8.22 percent and fuel lighting and lubricants prices were higher by 7.74 percent over last year.
However, comparison of the WPI of October 2006 with previous month (September) shows that during this one month prices of raw materials declined by 6.04 percent, manufactures by 0.73 percent while the prices of fuel and lighting, food and building materials increased by 0.18, 0.17 and 0.10 percent, respectively.
Detailed analysis of CPI data shows that under food and beverages, the items, which became dearer in October 2006, were onion 27.85 percent, fresh fruits 11.31 percent, vegetable 6.83 percent, pulse gram 5.15 percent, besan 3.79 percent and potatoes prices increased by 1.55 percent in one month over September 2006.